Apple App Store Surpasses $400 Billion in 2024

Apple Reports Significant Growth in U.S. App Store Revenue

Prior to its upcoming Worldwide Developers Conference, Apple announced updated financial data concerning the performance of the U.S. App Store. According to the company, the U.S. App Store ecosystem generated $406 billion in developer billings and sales during 2024.

This figure represents a substantial increase, almost tripling the $142 billion recorded in 2019.

Commission Structure and Developer Earnings

Apple emphasized that 90% of all billings and sales processed through the App Store resulted in no commission being paid to Apple by the developers.

These findings originate from a study commissioned by Apple, conducted by Professor Andrey Fradkin of Boston University Questrom School of Business and economist Dr. Jessica Burley from Analysis Group.

Analysis Group's Role and Antitrust Scrutiny

Analysis Group has collaborated with Apple for several years, particularly during heightened antitrust scrutiny. Their work focuses on presenting the App Store’s market influence positively and highlighting its benefits for developers.

These studies consistently demonstrate that a limited portion of developers are subject to Apple’s commissions.

Furthermore, a significant number of those who do pay commissions benefit from reduced rates, such as the 15% rate offered through the Small Business Program.

Legal Challenges and App Store Changes

Despite these findings, Apple has faced legal pressure to increase competition within the App Store.

U.S. District Judge Yvonne Gonzalez Rogers recently ruled that Apple had violated a previous court order stemming from a lawsuit initiated by Epic Games, the creators of Fortnite.

This ruling compelled Apple to allow developers to include links within their apps directing users to alternative web-based payment options, bypassing Apple’s commission fees.

Apple is currently appealing this decision.

Developer Sentiment and the App Store Ecosystem

The ongoing dispute over App Store commissions has fostered discontent among iOS developers.

Many developers believe their contributions have been instrumental in the iPhone’s success and advocate for greater recognition and fairer treatment.

Conversely, Apple maintains that the App Store is the primary driver of developer success, providing a platform for app discovery and streamlined payment processing.

Growth in Developer Earnings and Global Reach

Apple’s latest report indicates that earnings for U.S.-based developers have more than doubled in the past five years.

Specifically, small business developers have experienced a 76% increase in earnings from 2021 to 2024.

This increase is partly attributable to the 2020 launch of Apple’s Small Business Program, which lowered commissions for developers earning under $1 million annually.

The App Store also provides U.S. developers access to a global market spanning 175 countries and regions.

Moreover, it safeguards against billions of dollars in fraudulent transactions.

Developer Tools and Investment

Apple’s investments in developer resources include a comprehensive suite of 250,000 APIs.

These APIs are integrated into frameworks such as HealthKit, Metal, Core ML, MapKit, and SwiftUI.

Breakdown of Billings and Sales

The report further details revenue streams within the App Store where no commission is charged.

In 2024, the U.S. App Store facilitated $277 billion in sales of physical goods and services, $75 billion from in-app advertising, and $53 billion from digital goods and services.

Since 2019, spending on physical goods and services has more than tripled, while in-app spending on digital goods and services and in-app advertising has more than doubled.

Spending on general retail and grocery delivery has increased over fourfold.